Cancel Your Payment Processing Contract Without Penalty

by David Dierking

2 min read

There’s no two ways around it. Customers expect you to accept credit cards. They want to be able to pay for a purchase in the way that’s most convenient for them.

But accepting credit cards is expensive, and it’s about to become even more so. Visa Canada will hike its assessment fees by one-third in April 2013, while MasterCard Canada plans to raise its assessment fees by 20 percent on July 1, 2013.

In fact, many Canadian credit card payment processors have already been sending out notices of increases to their Card Brand Fees. The Canadian Federation of Independent Business recently published an article that explains what the impact of these increases may mean to your business – click here for the link.

That’s the bad news. The good news is that getting a price increase on your payment processing is your opportunity to evaluate whether you are happy with your current credit card processing provider– even if you currently have a long-term contract.

That’s because both Visa Canada and MasterCard Canada have agreed to abide by the terms of the Code of Conduct for the Credit and Debit Card Industry in Canada.

Introduced by the Minister of Finance on May 17, 2010, the Code lays out rules governing the relationship of credit card and debit providers and merchants, and one of them is that following notification of a fee increase or the introduction of a new fee, merchants will be allowed to cancel their contracts without penalty within 90 days of receiving notice of the fee increase or the introduction of a new fee.

So, if you’ve received a fee increase notice this year, now is the perfect time to review what your credit payment processor is charging you, and think about whether you might want to try something different.

For example, Intuit’s Merchant Service for QuickBooks offers you the ability to accept credit and debit cards with no long term commitment. You can cancel any time without penalty. Pricing is competitive. And best of all, once you turn the service on, QuickBooks processes payments and updates your accounting in one step saving you time on paperwork.

This Merchant Provider Comparison Checklist makes it easy for you to see how your current credit card processing provider stacks up to Merchant Service for QuickBooks.

You don’t have to be stuck in a long-term contract, just accepting whatever price increase comes your way. Read through the Code of Conduct for the Credit and Debit Card Industry in Canada and learn what your rights as a merchant are.

And then ask yourself, “Is it time to switch?”

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